EURJPY filling into structure.

29 de jul. de 2017

Over the past several years, EURJPY has been confined to a limited, contracting range that is wrought with impulse waves and sideways corrections. The current trend is no exception, forming two flags at points of structure drawn out from extended trend lines, thus suggesting a third bullish move may be in order. OBV and A/D indicators affirm the strength of the prevailing trend, so I have no reason to expect that the current flag is a slowing of momentum in response to a reversal in sentiment. Two profit targets are easily identifiable on the chart: the .618 retracement of the 3-year range (or most recent highest high, lowest low) and the upper boundary of the contracting wedge that has taken form over the past 5 years. The former is, of course, the more conservative, and should thus be used as an opportunity to reduce position size before sights are set on TP2.